The average investor often significantly underperforms a simple index. Blame the neurological wiring that we all share.
Chances are, your behavioral biases are hurting the performance of your portfolio. A lot of economic and financial theory is built upon the premise that humans are rational agents but, if you’ve ever been stuck in traffic, you will be aware of just how easily this assumption is disproven.
That’s why we save investors time by providing the tools they need to construct their own stock selection and portfolio construction strategies. If we take IG Group Holdings (LON:IGG), we can show how just a few of our metrics can tell you an awful lot about a company in seconds.
A look at the factors driving IG Group’s share price
Factor investing is not new - its long term success is something of an open secret. In fact, to explain Stockopedia’s StockRank means we tell the story of an investment philosophy built by some of the greatest investors to ever live...
A (very brief) timeline might go something like this:
Stockopedia ranks every stock in the market according to these factors. Taking IG Group, we can see that it has:
We classify stocks with such a favourable mix of factor exposures Super Stocks. Statistically speaking they are more likely to outperform than other stocks according to research from luminaries such as Robert Haugen. Based on our analysis, Ig Group is one of them.
Disclaimer: These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. The author has no position in the stocks mentioned, unless otherwise stated.